Court considers statutory basis for liquidator claims against accountants of a company in liquidation

Tom Schinckel, Andrew Edington and Jaanvi Jogia of Corrs summarise a case where the Federal Court held that liquidators cannot rely on section 1324 of the Corporations Act as a stand-alone pathway to damages against external accountants allegedly involved in directors’ breaches or insolvent trading, underscoring the need to frame third-party claims within the correct statutory regime and timing requirements for accessorial liability.

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